Northern Star Resources delivered record financial performance in FY26 with underlying net profit after tax of A$1.8 billion, up 26% year-on-year, underpinned by a strong gold price environment and robust operational execution. The real driver of investor interest, however, is not the FY26 result itself but what comes next, as the company enters a transformational phase with the KCGM mill expansion now commissioning. This expansion represents the most significant growth catalyst in Northern Star’s portfolio and is expected to structurally reset the company’s cost base while delivering greater operational consistency.
The FY26 result reflects the substantial uplift in the gold price, with the average realised price reaching A$4,925 per ounce compared to A$3,922 in the prior year. While this 26% price increase drove revenue to A$7.6 billion, up 19% year-on-year, gold sold actually declined 6% to 1.54 million ounces, meaning earnings growth came predominantly from higher gold prices rather than production volume. Cost of sales increased 15% to A$4.7 billion, reflecting higher mining activity, labour and contractor cost inflation, maintenance spending, and energy costs.
Northern Star maintains a strong investment-grade balance sheet with cash and bullion of A$1.2 billion, positioning the company well to fund both organic growth and shareholder returns. Management has demonstrated disciplined capital allocation, returning A$3.3 billion cumulatively to shareholders to date. In FY26, the company declared a fully franked dividend of 55 cents per share at the upper end of its policy range, while commencing a A$500 million on-market share buyback program, of which A$129 million has been completed.
FY27 guidance reflects the early stages of KCGM commissioning, with group production expected to reach 1,500-1,650 thousand ounces at an all-in sustaining cost (AISC) of A$3,050 to A$3,450 per ounce. KCGM specifically is forecast to contribute 550-650 thousand ounces during the ramp-up phase. This production step-up, combined with expected AISC improvements as KCGM reaches capacity, should drive a substantial increase in free cash flow generation. The company’s underlying return on capital employed of 13.4% is positioned to strengthen as the expansion ramps up.
Investors should monitor KCGM’s commissioning progress and operational ramp-up closely over the coming quarters, as execution risk remains a key consideration. The guidance range reflects expected variability in operating performance as the facility ramps up, and cost trajectory will warrant attention given the inflationary environment reflected in FY26 results. This announcement is flagged as price sensitive and material by the ASX.
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About Northern Star Resources Limited (ASX: NST)
Northern Star Resources Limited is a gold mining and exploration company that engages in the exploration, development, mining, and processing of gold deposits. The company also sells refined gold and operates mining operations in Western Australia, the Northern Territory, and Alaska.
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